So I will be going back to being self employed. I’m also going to be putting a lot more money into crypto each week. Now does anyone know if I can offset this as a business cost like I do fuel etc off my tax bill?
haha. Wouldn’t that be nice. I don’t see any way you can make that into a business expense and I wouldn’t try in my opinion that would catch up with you in a bad way.
There needs to be a lot more detail and context to what you are asking.
I think the best thing to do is just ask the tax office when I ring them to tell them I am self employed again.
Basically I’m just asking if I offset the cost of me “investing” into crypto as a business expense just incase I make a loss. But I’m going to just ring the tax office and ask them to be safe.
You declare some trading losses but there is a cap on it and you can do that whether you are a business or not that is standard trading practices. There may be some other advantages to having your trading setup as a business but you really need to talk to an accountant for that. I do not think your actual money that you invest can be wrote off only the loss if you were to cash out and then I think it needs to be invested for at minimum 30days before you can write off a loss. Like I said you need to talk to an accountant / CPA for this.
Mining is the easiest to setup as a business and has the most relatable rules with regards to taxes. Whether people want to follow these or not is up to them, but I find the IRS’ rules and guidance around this quite straight forward…
No need to- you can claim the loss by itself but only up to $3000 a year.
tbf I don’t think I’ll pay much tax at all if any because I literally claim for anything. You can literally claim for a dog and it’s food as a business expense because it’s seen as a guard dog if you have money in the house haha. But cheers, I’ll ill just ask HMRC the best thing to do though just to be safe!
Ok do what you gotta do. You are asking for advice and gave it. If you are going to break the law and avoid taxes by claiming shit that isn’t really business related then why ask for advice because you have just stated that your threw out the rule book.
It’s not breaking the law though. I’m looking for the best way to do it so I pay less tax legally. Just wondered if anyone knew
I’m just trying to gauge if it’s a business expense or not because I could essentially lose money if what I invest in or is it a capital gains tax? Saves me having to ring the tax office to find out.
That is actually not how it works and you can get audited.
I just represented a client before the IRS who has over $50K in expenses reversed because half were made up and the other half didn’t conform to the business (no you can not deduct your hair dressing fees or gym memberships).
And yes- the IRS will audit you, especially if your business expenses are excessive and don’t conform.
Business expenses are relevant and necessary to the purpose of the business. In your case, crypto wouldn’t be so therefore you can’t deduct it as a business loss.
I’m in the uk so this is how it works if you are self employed. Anything that is a cost for me to work like fuel, lunch, car insurance, mobile phone etc. That all gets added together and gets deducted off your earnings. What I’m asking is can I do the same with crypto/stocks is can I off set the costs if I make a loss on those. Obviously I would have to pay the tax if I make profit.
But like I say best thing for me to do is ring the tax office and ask. I have asked a few family members who deal with accounts and things and they aren’t 100%, next place was to ask here. But safest thing is to ring them and ask. Then I’m 100%
If I’m using it to make money surely it will be an expense then just pay tax on what profits I make
I am not familiar with UK taxes as I am an American CPA however I would naturally feel that expenses still have to correlate in the business some way for it to be deducted.
Any way- good luck- hope you get the answer you are looking for.
Thank you, I’m not trying to not pay tax I’m just not sure what it would come under once I am self employed
It’s capital gains tax. So it comes under a different tax than what I earn beng self employed
Isn’t crypto the same As gambling in the UK no tax?